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Buy it! If it's credit issues I work with people who have credit issues all the time that have gotten approved. I am with The Lenders Network, we are kind of like the Lending Tree for people with credit issues, self employed or other issues most banks cannot approve we have a few lenders that go down to a 580 for FHA loans.

If the foreclosure process has started, it is too late to work out a purchase with the owner / lender.
But, when the lender starts to take bids on it or auctions it off, you can try to aquire the property. Find
out who the lender is. You being pre-approved will help you for a quick foreclosure purchase.